Which statement describes Scope 2 emissions?

Scope 2 emissions specifically refer to the indirect greenhouse gas emissions associated with the generation of purchased electricity, steam, heating, and cooling consumed by a reporting company. This means that although the company does not directly emit these gases through its own activities—such as burning fossil fuels—it is responsible for the emissions that occur during the electricity production process at the power plants.

Understanding that Scope 2 emissions focus on the electricity and energy consumed helps clarify how businesses can impact these emissions through their energy purchasing decisions. For example, a company can reduce its Scope 2 emissions by purchasing renewable energy or by improving efficiency in its energy use.

In contrast, direct emissions from facilities relate to Scope 1 emissions, which are generated from sources owned or controlled by the company. Emissions from the supply chain are typically classified as Scope 3 emissions, which include all other indirect emissions that occur in a company’s value chain. Lastly, emissions from employee travel typically fall under Scope 3 as well, as they are also considered indirect emissions not directly produced by the company’s own operations.